What is a self-inspection draw?

How a self-inspection draw works.

The borrower or builder submits the draw request with photos or video of the completed work, usually following a list of required views. The lender's draw team reviews the submission against the budget and decides whether to fund, ask for more evidence or order an independent inspection. There is no third-party site visit unless the lender calls for one.

Self-inspection is a fit-for-purpose tool, not a shortcut. It trades some independence for speed and cost, and it works when that trade suits the loan.

Where it fits.

Lenders most often allow self-inspection draws for:

• small draws relative to the loan, where a site visit costs more than the risk it controls;
• simple, easy-to-photograph scopes, such as cosmetic rehab or finish work;
• experienced borrowers with a clean history on prior projects;
• short-timeline renovation loans where speed matters to the project.

An independent inspection usually remains the better tool for the first draw, the final draw, large draws, stored materials, work about to be covered, and any draw after an exception or a missed milestone.

Evidence rules that make it work.

A self-inspection program is only as strong as its rules. Common ones:

1. Required views for each budget line, plus the address and every side of the structure; see draw inspection photo requirements.
2. Capture inside an app with date and time stamps and location data, rather than uploads from a camera roll.
3. A named person responsible for each submission.
4. An independent on-site inspection at set points, and whenever the photos don't support the request.

Photographs alone can lack context, scale or full coverage, which is why most programs keep that independent check in reserve.

Why it matters for lenders.

Write down which loans qualify, what each submission must include, and what triggers an on-site visit. Collateral on a construction loan exists only as the work goes in, as the NCUA's examiner guide points out, so the policy should say how the lender knows it did. Our guide to self-inspection vs. third-party draw inspections covers which draws fit each path and how to write the rule.

How RAZE handles it.

RAZE supports self-inspection draws through Direct Request. The lender creates the order in the Ordering Engine and directs it to the borrower or general contractor, who completes it in the RAZE Mobile App. The evidence rules above travel with the order: the lender sets the required questions and photos, and every photo carries GPS coordinates, date and time stamps and the device behind it. When a draw needs an independent visit, the lender routes the next order to a RAZE Marketplace inspector or its own inspector instead, and the report follows the same standard either way.